Sinclair Gold (ASX:SGC) completed over 20,000 meters of drilling at its Mt Henry gold project in Western Australia, triggering the first contingent consideration milestone under the terms of Sinclair's acquisition of the project from Westgold Resources (ASX:WGX), according to a Wednesday Australian bourse filing.

Sinclair decided to satisfy the contingent consideration via the payment of AU$5 million in cash to Westgold within 15 business days, and as a result, 7.6 million performance rights associated with the contingent consideration will be cancelled.

Sinclair will receive a further AU$4 million in cash and four million shares from Stria Lithium in consideration for the grant of a 1% net smelter return royalty over the Mt Henry project after all conditions precedent related to a non-dilutive funding package were satisfied.

Sinclair's shares rose 1% in recent trading on Wednesday.